Organizational behavior (OB) is a field of study that investigates the impact that individuals, groups, and structure have on behavior within an organization, then applies that knowledge to make organizations work more effectively (Robbins, 2003). In recent times, we notice the following changes in the organizational set up:
1. Demise of traditional hierarchical structure
2. Emergence of workforce with different expectations form organizations
3. Advancement of information technology
4. Increasing importance on empowerment and teamwork
5. Concern for work-life balance
An affective and efficient manager therefore, should focus on two key results. The first is task performance—the quality and quantity of the work produced or the services provided by the work unit as a whole. The second is job satisfaction—how people feel about their work and the work setting.
OB directs a manager’s attention to such matters as job satisfaction, job involvement, and organizational commitment, as well as measures of actual task performance. OB also recognizes the need for changing behavior, attitude and managerial styles in the context of the above. Hence, management processes and functions are vital to organizational effectiveness. An understanding of the basis management functions helps in comprehending the key roles managers need to play to run organizations effectively.